‘Deeply damaging’: Courts rule against challenge to new UK VAT rules May 24, 2021 The UK High Court has rules against a legal challenge brought by members of the travel retail industry against the changes to tax-free shopping laws in the country “The Treasury has baked-in a competitive disadvantage for UK tourism by making this the only country in Europe not to offer tax-free shopping.” That was the reaction from travel retail industry leaders after the UK’s High Court and Court of Appeal blocked a legal challenge against the country’s new duty-free laws. The case, brought by Dufry and Global Blue, sought to challenge a decision by the Government to withdraw the VAT Retail Export Scheme (RES) and the Extra Statutory Concession (ESC) on duty-free and tax-free shopping.